The impact of Covid-19 is felt worldwide. Most people lost their jobs, leaving many borrowers without the means to repay their debts. Fortunately, the federal government came to the rescue of different groups of debtors through a repayment relief program. https://forms.legal/blog/an-overview-of-the-extended-covid-19-student-loan-repayment-relief/
A form for loan agreement may be of two types.Secured AgreementA Secured Loan is issued as well as supported along with collateral, for use if no payment can be made any more by the borrower.
The term “collateral” generally refers to some physical asset which may be sold off and / or seized by the lender for paying back the rest of the loan balance.
The collateral may be bonds, stocks, house or car.In case the personal loan agreement contract does not have a clause for collateral, the lender needs to approach the court and make an appeal to have the borrower’s assets seized.
When a clause is there in place, there might still be a need for the lender to approach the court for seizing on the collateral.
However, the process runs in a smoother manner.Unsecured AgreementAn unsecured loan is a type of loan which is issued minus any collateral.
Such types of loans are commoner while loaning money to family members or friends, and involve the use of a personal loan agreement template.